PNW Home Insurance Challenges
How To Navigate the Hard Home Insurance Market:
Landscape:
After compounding years of over $300 billion in losses, it’s safe to say the home insurance market is struggling. This means property insurance customers are going to see larger premiums and even non-renewals! While no one likes paying more for their insurance, this is a great time to understand your home insurance and what factors might be hindering a favorable rate.
Most Common Factors When Underwriting Home Insurance:
-
Location: Homes located in areas prone to natural disasters such as wildfires, earthquakes, or floods may have higher insurance premiums. The proximity to fire stations and hydrants can also impact insurance rates.
-
Construction and age of the home: The age and type of construction of the home can also affect insurance costs. Older homes or those made with less durable materials may have higher premiums.
-
Home security measures: Homes that have security systems, smoke detectors, and fire alarms may qualify for discounts on their insurance premiums.
-
Claims history: A history of filing multiple insurance claims can lead to higher premiums or difficulty in obtaining coverage.
-
Credit score: Insurers may consider an individual’s credit score when determining insurance rates. A higher credit score may result in lower premiums.
-
Coverage limits and deductibles: The amount of coverage and deductible chosen by the homeowner can impact insurance costs. Opting for higher coverage limits or lower deductibles may increase premiums.
-
Liability coverage: The amount of liability coverage chosen can also affect insurance rates. Higher liability coverage limits may result in higher premiums. Other coverages like medical payments and personal injury can also be factors of your overall home insurance bill.
-
Bundling policies: Insuring multiple policies with the same insurance company, such as home and auto insurance, may result in discounts on premiums.
-
Insurance company: Different insurance companies may offer varying rates and coverage options, so it’s essential to shop around and compare quotes from multiple providers.
-
Home inspection: Some insurers may require a home inspection before issuing coverage, which can impact rates based on the condition of the property.
- Roof Age: Many insurance companies are now seriously considering the age of the home’s roof as a qualifier for coverage. While metal roofs are receiving more grace, the ideal roof age for insurance companies are 15 years or less.
How To Minimize Your Home Insurance Bill
While some things like the property location and past claims are unchangeable, we do have a handful of tips to help your insurance be as cost efficient as possible.
House Keeping: Before your policy renews, insurance companies make order a drive-by inspection or even a recent arial satellite imagery! We advise trimming bushes, pruning tree branches that may be overhanging or touching the roof and give your roof a thorough cleaning. Trusted companies like Roof Maxx can help clean and restore your roof in most cases, to give a polished look for any such insurance inspection.
Pursue Common Discounts: Most insurance companies will give discounts for having multiple policies with their company, a home security system, SMART home devices, and higher customer credit scores. Make sure to update your insurance agent when these home improvements can be completed, so these discounts can be added.
Summary:
High claims losses and economic factors has made home insurance more expensive for most customers this year. Knowing what factors are driving higher insurance rates can help homeowners save money and improve their property. Maximizing company discounts like bundling policies and add security features can go a long way in seeing a lower insurance bill this year!
If you’re looking for a fresh and engaging insurance experience, visit the group at Northtown Insurance for all your insurance questions and needs!
Fine Print: This is a general overview with the intention of bringing awareness to coverage options and general industry standards. Coverage varies between carriers and states. Check your policy for specifics.